walmart case

walmart case - 1 TEMPLE UNIVERSITY The Fox School of...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
TEMPLE UNIVERSITY The Fox School of Business and Management Marketing Department Case Name: Wal-Mart’s Global Expansion In Partial Fulfillment For International Marketing BM-0250 (IBA-275): Section #004 Spring, 2007 Submitted to C. Martini Marketing Instructor On 4/9/07 By Ravi Desai 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Summary This case discusses Wal-Mart, the world’s largest retail giant and its global expansion. The company itself makes use of an assortment of different retail formats which include discount stores, supercenters, and Sam’s club. Wal-Mart is heavy on the idea of boundaryless retailing and is expected to be very aggressive in its global marketing. The first country that Wal-Mart has expanded to was Mexico in 1991. In order to accomplish this, Wal-Mart established a joint venture with Cigra SA, Mexico’s largest retailer. With its experience in Mexico, Wal-Mart has seemed to make many mistakes such as posting poorly translated signs and selling merchandise that wouldn’t normally be sold in a market such as Mexico. American-style packaged meats and vegetables was also a lost cause since the locals could just go to small neighborhood stores. In Mexico, Wal-Mart lacked the organization that allowed them to sell their merchandise at low prices in the U.S. Wal-Mart continued its dedication to Mexico by transferring its joint venture shares in Cigra common stock and purchasing enough additional shares to have a controlling stake in the company. In 1995, Wal-Mart combined their efforts with Lojas Americanas SA and opened up five stores in Brazil. The retail giant also opened up four stores in Argentina without a joint venture. Wal-Mart was operating 12 supercenters and eight Sam’s Clubs in Brazil and 11 supercenters in Argentina by the year 2000. Wal-Mart entered the Canadian market in 1994 by purchasing their 122-store Woolco chain however, the small size of these Woolco stores resulted in poor sales. In order to combat this, Wal-Mart responded by moving to new locations and expanding units. 2
Background image of page 2
The competitive challenges in South America are extreme, in that a French company, Carrefour, arrived there first. The company has agreements with manufacturers of leading local brands. Carrefour also beat out Wal-Mart’s prices on important items such as cooking oil, rice, and shampoo. Carrefour is said to have the upper hand in the fresh fish, mean and produce market as well. Although the competition was strong, Wal-Mart adapted by hiring local managers, and made changes to allow South American’s to have a better shopping experience. In 1997, Wal-Mart acquired 21 stores from Wertkauf GmbH in Europe. In 1998 they acquired 74 additional stores from Spar Handels AG. The losses for Wal-Mart in Germany were about $200 million however, the company announced that it planned to open 50 more stores in 2000. The retail giant had also offered Britain’s third largest supermarket chain $10 billion. This was the largest cash offer ever made for a business in the U.K. China has also been aggressively targeted by Wal-Mart.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/05/2008 for the course MKTG 3553 taught by Professor Martini during the Spring '08 term at Temple.

Page1 / 12

walmart case - 1 TEMPLE UNIVERSITY The Fox School of...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online